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After the Bitcoin price dropped to $9,800 on August 15th, it then started to maintain a steady upward trend lasting for 5 days until the 20th. The price was consolidating around the $10,600 range and today we saw the price break through the bottom of the established trendline.
This could mean that the upward trendline was simply a bear flag. A bear flag is usually an upward trend that follows a sharp decline in price. After this upward trend, another sharp downward trend will usually be mimicking the previous sharp drop. So if that is the case, we could see the price reaching the support at ~$9,400.
The volume picked up and the bears took over. The RSI is now showing a heavy decline which is closing in on the oversold range. The fast EMA(200) is above the price and now indicating a bearish price crossover.
What To Consider
We are in bear territory with the next support level being ~9,400. Consider a SELL(short) at $10,100 and take profits at $9,400.
Active Trade Signal
- Sell at $10,100
- Stop-loss at $10,500
- Take-profit at $9,400
- Risk/reward ratio: 1:2 (attractive)
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